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Top Analyst Reports: Mastercard, Coca-Cola, Amgen & More

Kalyan Nandy
iRobot's (IRBT) second-quarter 2019 results gain from solid international business and healthy product demand. It lowers the 2019 projection due to tariff-related headwinds.

Thursday, July 4, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Mastercard (MA), Coca-Cola (KO) and Amgen (AMGN). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Mastercard shares have increased +33% in the past year, outperforming the Zacks Financial Transaction Services industry’s rally of +27.9%. The Zacks analyst thinks the company is well positioned for growth, given its solid market position, ongoing expansion, digital initiatives and opportunities from the shift toward electronic payments. Its numerous acquisitions have aided revenue growth. The company has been gaining from higher switched transactions, increase in cross-border volume and gross dollar volume, partly offset by an increase in rebates and incentives. However, escalating costs will put pressure on margins. Also, in order to gain customers and new business, Mastercard has been incurring a high level of cost under rebates and incentives, which remains a concern. But strong balance sheet enables it for higher business investments.

(You can read the full research report on Mastercard here >>>).

Shares of Coca-Cola have increased +14% in the past year, outperforming the Zacks Soft Drinks Beverages industry's +4.1% gain. The Zacks analyst thinks this is largely attributable to the effective execution of strategies aimed at evolving into a consumer-centric total beverage company. This approach has bolstered its quarterly performances as is evident from a robust surprise trend. First-quarter 2019 marked its seventh positive earnings surprise in the last eight quarters and the seventh straight sales beat. Ongoing productivity efforts and a disciplined growth strategy along with robust performance across segments are aiding top and bottom lines. Innovation and investment in core categories and brands have been the primary focus area, leading to the expansion of retail value share. Moreover, global re-franchising initiatives are expected to boost margins. However, Coca-Cola expects adverse currency rates to mar comparable revenues and operating income in the second quarter and 2019.

(You can read the full research report on Coca-Cola here >>>).

Amgen shares have lost -5.4% year to date versus the Zacks Biomedical and Genetics industry's rally of +8.3%. The Zacks analyst thinks that while Amgen’s newer drugs — Prolia, Xgeva, Blincyto, Kyprolis — will drive sales, biosimilar and brand competition faced by its legacy products will create pressure on the top line. However, recently launched products including Aimovig, biosimilars and international expansion provide incremental growth opportunities. Amgen is also progressing successfully with its pipeline. In the past five years, Amgen has launched nine products, including two in new therapeutic areas. Amgen boasts of a strong biosimilars pipeline, which could be an important long-term growth driver. Amgen’s restructuring plan is making it leaner and more cost efficient. Estimate revisions have been mixed ahead of its Q2 earnings release. However, Amgen has a positive record of earnings surprises in the past few quarters.

(You can read the full research report on Amgen here >>>).

Other noteworthy reports we are featuring today include Caterpillar (CAT), CVS Health (CVS) and PNC Financial (PNC).

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Note: Our Director of Research Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

Investment & Innovation Fuel Coca-Cola's (KO) Growth

New Drugs Support Amgen's (AMGN) Sales, Pipeline Strong

Featured Reports

Aetna Buyout to Boost CVS Health (CVS), PBM Challenges Stay

The Zacks analyst looks forward to the huge synergy benefit that CVS Health is going to achieve from its $70 billion buyout of Aetna. Yet, pharmacy reimbursement challenges may impede growth in 2019.

Attractive Business Mixes Aid PNC, Increasing Costs a Woe

Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline. However, rising costs due to investment in technology remains a headwind.

Loans, Global Reach Aid BNY Mellon (BK), Rising Costs A Woe

Per the Zacks analyst, rise in demand for loans, global reach and relatively higher rates will aid BNY Mellon's profitability. Mounting expenses is a key concern.

Delta (DAL) Gains From Passenger Revenues Amid High Costs

The Zacks analyst is optimistic about an uptick in passenger revenues owing to robust demand for air travel. However, increase in non-fuel unit costs is a worry.

Symantec (SYMC) Banks on Higher ARPU, Solid Consumer Segment

Per the Zacks analyst, Symantec is gaining from strong performance of its Consumer segment. Improvement in ARPU on the back of increasing cross-selling and higher retention rate is a positive.

Guidewire (GWRE) Rides on Cyence Buyout & Cloud Partnerships

Per the Zacks analyst, Guidewire's elaborate partnership programs and strategic collaborations are major growth drivers.

Patterson (PDCO) Gains from Animal Health, Higher Costs Ail

Per the Zacks analyst, strong prospects in the core Animal Health unit continue to boost Patterson Companies.

New Upgrades

Improving Demand, Cost Cuts Fuel Caterpillar's (CAT) Growth

Per the Zacks analyst, improving end-markets, focus on cost control and investment in expanded offerings, services and digital capabilities like e-commerce poise Caterpillar well for growth.

Diversification of Investment Portfolio Aids Annaly (NLY)

Per the Zacks analyst, Annaly's effort to diversify its investment portfolio will provide more stable returns in the days ahead. Unfavorable funding dynamics and compressed spreads remain woes.

Strength in Sensor & Transmitter Segments Aid DexCom (DXCM)

Per the Zacks analyst, strength in the Sensor and Transmitter segments are key catalysts for DexCom. Significant commercial opportunities in the glucose monitoring market also raise optimism.

New Downgrades

Stiff Competition in HIV, Weak HCV Weigh on Gilead (GILD)

Per the Zacks analyst, weakness in HCV franchise persists for Gilead thereby denting the performance. While the HIV franchise maintains momentum, competition for the franchise will increase.

LG Dependence & Competition Ail Universal Display (OLED)

Per the Zacks analyst, significant customer concentration from LG and Samsung remains an overhang for Universal Display. Stiff competition and weakness in the smartphone space add to its woes.

Kennametal's (KMT) Growth Marred by Rise in Operating Costs

Per the Zacks analyst, Kennametal's steady revenue growth and operational efficiencies are being dampened by rise in raw-material costs.

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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
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